Working Tax Credit (WTC) is administered by the HMRC. It is a means-tested or income-related tax-free payment for those in low paid work.

You can get WTC if you meet the following conditions at the time you make your claim:

• You are at least 16 years old; and either you or your partner are working for 16 or more hours a week, and
  • You are responsible for a dependent child or young person; or
  • You have a physical or mental disability that puts you at a disadvantage in getting a job and you were previously receiving some form of disability benefit; or
  • you or your partner are aged 50 or over and qualify for the 50+ element; or
  • you or your partner are aged 25 or over and work at least 30 hours per week.
• You satisfy the residence and presence conditions and are not subject to Immigration Control.
• Your income is within a set limit, which varies according to your family circumstances.

If you are part of a couple, you claim WTC jointly and your claim is called a joint claim. Otherwise, you claim as a single person.

WTC is paid by reference to an 'award period'. This usually reflects the tax year (6 April to 5 April). It is based on income only and not capital, but 'income' does include actual income, such as interest, from capital. It can be paid in addition to most other benefits, but may, itself, count as income for some other means-tested benefits such as housing benefit and council tax benefit, which might thus be reduced.

The maximum amount of WTC is worked out by adding together various elements depending on individual circumstances. The elements are:

• A basic element.
• A couple element.
• A lone parent element.
• A 30 hour element if the claimant, or the claimant and partner together, work 30 hours or more per week and have children.
• A disabled worker element and in receipt of certain benefits and working at least 16 hours per week, you have to satisfy a 'disability test'.
• A severe disability element.
• A 50 plus element, in certain circumstances.
• A childcare element providing up to 70% of 'eligible' childcare costs.

Payments of working tax credit will be made directly into the claimants' nominated bank account or similar account. It is awarded for a complete tax year and, while a claim made after April may run only from the date of claim to the end of the tax year, there are circumstances where limited backdating may be applied. It is important to keep the HMRC informed of any change in circumstances which might affect the amount of tax credit due in order to avoid any underpayment or overpayment.

Application packs for WTC are available by ringing the Tax Credit Helpline - 0845 300 3900 (Minicom - 0845 300 3909) or from HMRC (HM Revenue & Customs) Enquiry Centres and Jobcentre Plus offices.
They can also be applied for on-line at www.hmrc.gov.uk/taxcredits.
Further information can be obtained via the Tax Credit Helpline, telephone 0845 300 3900 (Minicom 0845 300 3909).

DIAL Disclaimer
Whilst all the information given in this document was correct at the time of going to press, DIAL Doncaster cannot be held responsible for any subsequent changes.